Jump to content
House Price Crash Forum

MAIN HELP TO BUY MARK2 THREAD -


Recommended Posts

As I see it, it will nearly all go to remortgaging.

Those on high LTV will be moved as quick as possible to H2B. Win-win for the 'owner' and the bank. Big loss for the taxpayer. Slight loss for HPC as there will be less people needing to sell.

Has anyone asked Gidiot how this helps with supply (not that I believe supply is an issue either).

Have the opposition mentioned this? It's more of a Labour type policy. Madness. Any way to complain?

Surely the NEED to sell, really needing to shift the house is still there whatever the persons financing arrangements?

Link to post
Share on other sites
  • Replies 1.8k
  • Created
  • Last Reply

Top Posters In This Topic

If your mortgage goes from 6.5% to 3.5%, then the need should be less?

Maybe, but I was thinking more of care costs, moving for work, selling second homes etc, your mortgage could be zero % but if you have to move for work you need to sell? There are about 1/3 of households with no mortgage? This stuff won`t affect them, but they may still NEED to sell? It is deluded pricing that is freezing the market, this scheme only helps so far IMO.

Link to post
Share on other sites

As I see it, it will nearly all go to remortgaging.

Those on high LTV will be moved as quick as possible to H2B. Win-win for the 'owner' and the bank. Big loss for the taxpayer. Slight loss for HPC as there will be less people needing to sell.

Has anyone asked Gidiot how this helps with supply (not that I believe supply is an issue either).

Have the opposition mentioned this? It's more of a Labour type policy. Madness. Any way to complain?

I don't believe it will apply to remortgaging. You have to move home in order to qualify.

Link to post
Share on other sites

On that subject, there's the next logical extension of this scheme: the mortgage repayment protector.

If we ever did see a rise in mortgage interest rates, the government could then step in and hold down rates by providing a government guarantee that your mortgage rate would not rise above a certain amount, giving "confidence" and returning "stability" to the market.

Of course, so the theory goes, "the markets" would have their say in the end. But that one's simple - just keep printing more and more money and stealing from pension funds. In that respect there are no "markets".

The plates could go on spinning on this one for years.

And then there's the other logical extension of this scheme, which I've posited earlier on.

Tying together university loans and home loans in one great big package, with the students themselves providing a form of securitisation to help underpin the entire scheme based on the idea that in order to buy product B - the house to live in - the student must buy product A - the university tuition.

Keeps the debt ball rolling a bit longer. It doesn't mean that anyone would have to go to university, of course, and incur 30 grand of debt. They would only have to do this if they wanted to be able to afford a home to live in. Which is effectively the same thing.

yep, more insurance sales potential, more costs on top of everything else.....how could you pay if you lose your job?.....and life insurance....how could pay if your partner dies.......not forgetting home insurance.....how could you pay if the place burns down.......and all the while inflation is rising above the rate of house prices, dug yourself a hole, now having to take root. ;)

Link to post
Share on other sites

They would still need to come up with a deposit of about 20k for a family home in the SE, different to the days of picking an amount of money you want to borrow and signing something?

But your point is fair enough,. they don`t need so much deposit. I still think this will just fall flat, there are far too many cross-winds affecting the country`s finances and the sheeple`s finances.

and the day the scheme stops, the prices of houses will fall exactly by the amount of subsidy they ARENT getting anymore.

Link to post
Share on other sites

A bit like HB and rents.

The whole market is all about affordability.

It has nothing to do with quantity, nothing to do with the capital cost...all to do with the monthly affordability.

totally financialised down a dark alley with a gang of unknown hoodies hiding in the shadows.

Link to post
Share on other sites

The whole market is all about affordability.

It has nothing to do with quantity, nothing to do with the capital cost...all to do with the monthly affordability.

totally financialised down a dark alley with a gang of unknown hoodies hiding in the shadows.

...and the Hoodie shouts "Yo Bitch" and pulls his big thing out.......sorry wrong thread.

Link to post
Share on other sites

The whole market is all about affordability.

It has nothing to do with quantity, nothing to do with the capital cost...all to do with the monthly affordability.

totally financialised down a dark alley with a gang of unknown hoodies hiding in the shadows.

So if it cost £500,000 to buy and cost £500 per month to service.....no way would it ever be bought...I'll take two. ;)

Link to post
Share on other sites

They reported this on BBC Wales this lunchtime and added that a leading banker thought that it was the most stupid idea he had heard in his 30 year career.

It is wanton vandalism, I can't get to considering any possible impact as I simply cannot accept they could possibly do this. Surely it will eventually be diluted to the extent that it becomes meaningless? How can it not? Twilight zone stuff.

Link to post
Share on other sites

I heard some government stooge on radio 4 this morning explaining how taxpayer funds were not at risk due to way the scheme is set up- to which the question came 'Then why are the Government involved in the first place?'

Answer came there none. :lol:

This is such a joke- especially coming from the party of 'free markets'-

Here's a list of all those principled free market supporting Tories currently in parliament who have come out and publicly condemned this scheme;

Feel free to add to it if you know of any more.

As has been pointed out; once this thing is put in place it will be impossible to remove- any attempt to do so will bring down the market.

Link to post
Share on other sites

They reported this on BBC Wales this lunchtime and added that a leading banker thought that it was the most stupid idea he had heard in his 30 year career.

We have passed the tipping point of no return, forget the old monetary way of doing things.......new behaviours to learn sanctioned and approved from the top to keep the top and the whole economy ticking over, a time to unravel old mindsets of prudence, budgeting, repayment and responsibility, the new teachings are to recklessly grab what you can get, to buy what you want with it in anyway possible and hope things can only grow, inflate, price rises and things will get better. ;)

Link to post
Share on other sites

We have passed the tipping point of no return, forget the old monetary way of doing things.......new behaviours to learn sanctioned and approved from the top to keep the top and the whole economy ticking over, a time to unravel old mindsets of prudence, budgeting, repayment and responsibility, the new teachings are to recklessly grab what you can get, to buy what you want with it in anyway possible and hope things can only grow, inflate, price rises and things will get better. ;)

Or plan to gear up and default.

Which is the governement's route, (well most recently elected self-backscratchers) route, leave the mess to the next mob.

Which is the Bankrupt of England's route - via reducing the currently to scrap, new coinage a case in point.

Which ios the bankster's route - they throw the debt onto the popoulation and expect their gambles to be made good.

Which is maybe what even more of the public expect to do as well. Just borrow, spend and if it goes wrong throw it all back at the debt provider.

Link to post
Share on other sites

Yes as pointed out in the article below the only time Help to Buy will appear in the national accounts will be if it goes wrong.

What about the debt?

Exactly! As it is a (carefully worded) guarantee rather than actual spending then it will not appear in our national accounts and will be yet another off balance sheet burden on the UK economy. It is also yet another implicit subsidy for our banking sector.

It was only on Friday that I discussed the UK’s debt situation and this is one more item to add to the list except that it will only be officially counted if it goes wrong.

http://www.mindfulmoney.co.uk/wp/shaun-richards/is-ramping-the-uk-housing-market-really-the-way-to-kick-start-economic-growth/

Link to post
Share on other sites

We have passed the tipping point of no return, forget the old monetary way of doing things.......new behaviours to learn sanctioned and approved from the top to keep the top and the whole economy ticking over, a time to unravel old mindsets of prudence, budgeting, repayment and responsibility, the new teachings are to recklessly grab what you can get, to buy what you want with it in anyway possible and hope things can only grow, inflate, price rises and things will get better. ;)

I think you're right there.

There was a window of opportunity for the UK after the election but the debt seems to be running away from them now.

Things could change very quickly.

Link to post
Share on other sites

Yes as pointed out in the article below the only time Help to Buy will appear in the national accounts will be if it goes wrong.

http://www.mindfulmoney.co.uk/wp/shaun-richards/is-ramping-the-uk-housing-market-really-the-way-to-kick-start-economic-growth/

Of course it will go wrong. The boe is stuck because even keeping rates low the inflation problem from weak Pound will suck peoples disposable income with frozen wages and those loans at the margin will blow up.

Edited by Ash4781
Link to post
Share on other sites

On that subject, there's the next logical extension of this scheme: the mortgage repayment protector.

If we ever did see a rise in mortgage interest rates, the government could then step in and hold down rates by providing a government guarantee that your mortgage rate would not rise above a certain amount, giving "confidence" and returning "stability" to the market.

Of course, so the theory goes, "the markets" would have their say in the end. But that one's simple - just keep printing more and more money and stealing from pension funds. In that respect there are no "markets".

The plates could go on spinning on this one for years.

Government agencies now account for 90 percent of the mortgages issued in the United States. We have a lot of catching up to do.

Link to post
Share on other sites

Does anybody know where the money for this will come?

If the scheme is a bust and there are big claims on the guarantees and the equity loans go bad, it will all have to be recognised as a cost by the government and then paid for with debt, which in turn will increase the burden of taxation. Hence everyone who pays tax will pay.

If there are no claims on the guarantees and the loans don't go bad, then it will probably make a little money for the government.

Actually, this is probably as good a way as any to read it in the short term. The government want the builders to build and the lenders to lend, but the builders and lenders are (rightly) sceptical of the politicians promises. It's just a way of the government putting some skin in the game to show that they are not going to pull the rug from under the feet of the banks and builders before the election.

Link to post
Share on other sites

Of course it will go wrong. The boe is stuck because even keeping rates low the inflation problem from weak Pound will suck peoples disposable income with frozen wages and those loans at the margin will blow up.

+1

And that is how it plays in the long term. Great post.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.